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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Legal
Satisfied Customers: 41221
Experience:  Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.
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My mother passed away 03/01/2010 and had a irrovocable trust.

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My mother passed away 03/01/2010 and had a irrovocable trust.
There is a provision to change the trustee by majority vote. Does this hold true, even though Michigan changed their Trust language on 4/01/2010 stating that a trustee cannot be removed!

Thank you for your question and thank you most kindly for requesting me to assist you this afternoon. I would be happy to help out.

To answer your question directly, what governs is the STATE regulation and rules, not the language in the trust. Whenever the language in the trust violates or is contrary to state law, that language is pre-empted and is treated as being automatically replaced by the current language under the law. That means that if at this time a trustee cannot be removed as per state law, even if a trust has contrary terms to that affect, the language in the trust is ignored and state terms are utilized.

My apologies.

Customer: replied 3 years ago.
Even though she passed before the law was signed into law?

Craig,

Thank you for your follow-up. Even if the trust was created and closed before she passed away. The reasoning under state law is based on 'public policy'. Please allow me to use an extreme example to point out what I mean. The law expressly wanted to ensure uniformity--for example in the past there could be trusts set up that would require clauses or conditions that are now deemed illegal, such as basing disbursements on someone's gender or race. To ensure such terms would no longer be 'grandfathered', the law on trusts set forth conditions that any time changes took place that made certain conditions valid or invalid, it would affect all current trusts and would not keep the old clauses and conditions as valid.

Good luck.

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